their expenditures with nominal debt and inflation has a negative impact on aggregate productivity. If the monetary … authority can commit to an inflation policy, then a version of Oates (1972)'s decentralization result holds. By contrast, when …. Because country-level fiscal authorities do not take into account the costs to other countries of the inflation that their …

The fiscal theory states that inflation adjusts so that the real value of government debt equals the present value of … determines the path of expected inflation, while news about the present value of surpluses drives unexpected inflation. I use … fiscal theory to interpret historical episodes, including the rise and fall of inflation in the 1970s and 1980s, the long …

This paper studies the implications of central bank credibility for long-run inflation and inflation dynamics. We … competitive firms. Inflation is driven by the interaction of lack of commitment and the economic environment. We show that long …-run inflation increases following an unanticipated permanent increase in the labor wedge or decrease in the elasticity of …

Our current inflation stemmed from a fiscal shock. The Fed is slow to react. Why? Will the Fed's slow reaction spur … more inflation? I write a simple model that encompasses the Fed's mild projections and its slow reaction, and traditional … views that inflation will surge without swift rate rises. The key question is whether expectations are forward looking or …

We study how investors respond to inflation combining a customized survey experiment with trading data at a time of … historically high inflation. Investors' beliefs about the stock return-inflation relation are very heterogeneous in the cross … section and on average too optimistic. Moreover, many investors appear unaware of inflation-hedging strategies despite being …

This paper studies people's understanding of inflation--their perceived causes, consequences, trade-offs--and the … views align with established economic theories. Our key findings show that the major perceived causes of inflation include … negative consequences of inflation but the most noted one is the increased complexity and difficulty in household decision …

inflation, building on our earlier work for the United States. Globally, as in the United States, pandemic-era inflation was due … bank inflation targets. As the effects of supply shocks have subsided, tight labor markets, and the rises in nominal wages …, have become relatively more important sources of inflation in many countries. In several countries, including the United …